Canadian cannabis producer Organigram Holdings closed on the second of three tranches of an overall investment of 124.6 million Canadian dollars ($92 million) from a wholly owned subsidiary of British American Tobacco (BAT).
BT DE Investments, the BAT subsidiary, acquired roughly 4.4 million Organigram common shares and 8.5 million Class A preferred shares at CA$3.2203 per share for gross proceeds of CA$41.5 million, according to a news release.
The remaining 12.9 million shares will be issued in the final tranche, scheduled for around Feb. 28.
Organigram said it will use most of the funds to fund a strategic investment pool called Jupiter, which is designed to accelerate the company’s international growth goals and target investments both overseas and in the United States.
“With two tranches of the Jupiter pool now funded, combined with our strong balance sheet and targeted investment strategy, Organigram is well on its way to executing on its ambitious growth plan focusing on international, technological and product expansion,” Organigram Chief Strategy Officer Paolo De Luca said in a statement.
Organigram’s first investment of $2 million was made in North Carolina-based Open Book Extracts, a leading ingredient provider, product formulator and manufacturer of hemp-derived extracts and products.
The second investment of 14 million euros ($15.5 million) was made in Sanity Group, a leader in the rapidly growing German medical market.
Organigram shares trade as OGI on the Nasdaq and Toronto Stock Exchange.
